HEALTH and Wellness Minister Dr Michael Darville.
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Government is aiming to “break ground” on New Providence’s new $290m hospital by September 2024 after the project was approved for “concessionary financing” from a Chinese state-owned bank.
Dr Michael Darville, minister of health and wellness, yesterday pledged to Tribune Business that the 50-acre facility to be constructed in the Perpall Tract area will be “a Bahamian hospital” after the China Export-Import Bank, the same institution that financed Baha Mar’s multi-billion resort, agreed to fully fund it via a 20-year loan with an interest rate set at just 2 percent.
Acknowledging that a Chinese company will be the lead contractor, and that Chinese labour always follows where Beijing’s capital goes, he nevertheless promised that the Government will seek to ensure Bahamians “get the best end of the stick” and that local workers outnumber their foreign counterparts on the project.
Bahamians will get their first glimpse of the design and plans for the new hospital, which will house maternal, child and adolescent care as well as diagnostics and a “hub for tele-medicine”, at two Town Hall meetings set for tomorrow and May 16. A flyer advertising the meetings, which has been seen by this newspaper, says it is targeted at communities such as Stapledon, Rock Crusher and Dolphin Drive.
Dr Darville affirmed that the necessary feasibility and environmental studies have shown that the planned hospital location, situated by the traffic light on the road between the ‘six-legged’ JFK Drive roundabout and Saunders Beach roundabout, is the best and most suitable location capable of “holding a multi-storey structure the size of Baha Mar”.
Acknowledging the “political” sensitivities of accepting financing from a Chinese-government owned bank, the minister said The Bahamas had reached out to the US equivalent - the Export-Import Bank of the US - and other government-owned development banks and multilateral institutions but there was little to no “appetite” by others to take the hospital project.
He pointed out that multiple other Caribbean nations, such as Barbados, Trinidad and Guyana, were already exploiting low-cost Chinese loans to finance major healthcare and other infrastructure projects throughout the region so The Bahamas’ decision has not been taken in isolation.
“Everything is coming together very nicely and is actually moving quite rapidly,” Dr Darville told Tribune Business. “First, it was trying to find financing and completion of the feasibility studies and the Environmental Impact Assessment (EIA), and going out to market to try and find resources.
“We got approved for the Chinese Concessional Funding Facility probably about a month ago. There is this Chinese concessional loan in the Caribbean where many Caribbean countries are trying to get funding for capital works projects.”
Dr Darville reiterated that the Government had initially gone “out to the markets” in a bid to finance the new hospital via a public-private partnership (PPP) model, where private investors would help to raise the necessary capital and provide expertise to construct the facility, but it was unable to access funding at reasonable interest rates/debt servicing costs.
As a result, The Bahamas switched to seeking financing on a “country-by-country” basis, and Beijing - via the China Export-Import Bank - has proven accommodating. “The Chinese agreed for concessional funding of just under $290m at 2 percent for a 20-year period,” Dr Darville said.
“We did the feasibility study and the EIA, but didn’t want to move on anything until we had a pretty good idea of where the funding was coming from. Now this has come to the forefront, myself, the Ministry of Works and the Ministry of the Environment and Natural Resources are now in a good position to choose the site and also to speak to residents in close proximity to get their input.”
Hence this week’s Town Hall meetings. The first will be held at the Stapledon School Auditorium on Dolphin Drive tomorrow night at 7pm, with the second scheduled to take place at Living Waters Kingdom Ministries on Warren Street this Thursday also starting at the same time.
“Residents in the area can come and give their input on what they think of the project, and what the project is all about,” Dr Darville added, promising that they would be supplied with “detail” on all aspects of the new hospital. He confirmed that the 50-acre site will be located on the opposite side to residential areas on the road connecting JFK Drive with Saunders Beach.
Dr Darville last year confirmed that 14 acres out of the total 50 are being obtained from Sir Franklyn Wilson and his companies. “We had a negotiation ongoing with him,” Dr Darville said then of talks with the Arawak Homes chair.
“He has agreed in principle that he would allow us to continue the project. Our job is to now finalise the equity: A payment or a land swap. We negotiated that this was the best way to go. He has agreed in principle, and conceded, to allow the project to go forward pending us giving him compensation.”
And the likely heavy Chinese construction involvement was yesterday also seized upon by a former minister of health. Dr Duane Sands, now the FNM’s chairman, told Tribune Business: “There are so many issues when you start talking about a PPP similar to what happened at Baha Mar because all the employees are non-Bahamian. You have to ask: What is the benefit for us?”
Dr Darville, while acknowledging that Chinese labour and contractors frequently accompany loans and financing provided by state-owned institutions, pledged that the Davis administration will seek to maximise Bahamian participation and ensure that the financial benefits are felt locally.
“What happens with Chinese concessional loans and the China Export-Import Bank is that there’s a Chinese contractor directly tied in,” he told Tribune Business. “In our negotiating process, I can assure you the Bahamian people will get the best end of the stick with more Bahamian manpower numbers on the project than Chinese.
“The [loan] details have not been finalised. It’s not completed yet. The terms of the labour component will be completely transparent to the Bahamian people like the Gateway [airport road] project. We’re going to negotiate in the interests of Bahamian workers to ensure we have more Bahamian workers on the project that Chinese workers.
“You’re right. Typically these concessional loans from China come with a labour component, and we’re going to do our best to ensure Bahamians benefit financially from this project.” Chinese contractors and labour have taken the lead, dominant role on not just Baha Mar but also The Pointe project and British Colonial’s upgrades in downtown Nassau.
Dr Darville said the Government, once the main contractor is selected and the loan finalised, is aiming to “break ground” on the new hospital by September this year. Asked how long the construction process will take, he added: “The contractual term for the concessional loan facility is anywhere from 30 months to 36 months once you start construction. That means it will be more than two-and-half years.
“This doesn’t happen by chance,” the minister revealed of the loan. “I went throughout the Caribbean. I went to Guyana, I went to Trinidad. The Chinese are building and funding many healthcare facilities throughout the Caribbean.
“I’ve spoken to my counterparts in the Caribbean. It’s very interesting. The entire region is using Chinese financing for major infrastructure works. Barbados is, Trinidad is, Guyana is. Everybody is dealing with Chinese financing. We looked at the political implications. We reached out to the US Export-Import Bank, we reached out to others. The majority didn’t have the appetite in the early stages.”
Dr Darville assured that the Government, as well as the Ministry of Works, will have engineers and project monitors on-site during the hospital’s construction “to ensure the Bahamian people end up with a product that meets their requirements and lasts us for many years.
“We want value for money. We don’t want a hospital with a turnkey,” he added. “I don’t want the Bahamian people to think the Chinese will come, build a hospital and throw the key at us. This will be a Bahamian hospital, designed and built.”
The new hospital’s total projected cost, $289.399m, was revealed for the first time in documents accompanying the 2023-2024 Budget last May. Some $2m, and $8m, of that sum was due to be spent on “preparatory works” during the 2023-2024 and 2024-2025 fiscal years, respectively, with construction projected to ramp up in 2025-2026 with an $160m outlay.
Comments
Dawes 7 months, 1 week ago
This is a loan. They are not paying for it. At 2% interest over 20 years if compounded will mean it will cost around $432 million at the end. I am not saying that the 2% is a bad rate, just they should not be implying that the Chinese are paying for it, when it will be us. Of course the government of today fully knows they will most likely not be around when it comes time to pay, so they don't care.
realitycheck242 7 months, 1 week ago
Beware if the China debt-trap diplomacy
SP 7 months, 1 week ago
Total bullshyt U.S. propaganda. The actual reality is no one can identify not one verifiable instance of a "China debt-trap" scenario anywhere globally!
Conversely, there are any number of verifiable IMF and World Bank debt-trap situations including in the Bahamas, to be found globally, especially in Africa and other third world countries, that come with government controlling stipulations that hog-ties countries to allow the exploitation by western powers.
China should have been the FIRST place government approached for this facility!
concernedcitizen 7 months, 1 week ago
We go begging the IMF and World bank hat in hand for loans ,and then we theif , mismanage and plunder the loans and our revenue and then cry debt trap diplomacy .With the money we have taken in as a country we should be financing our own projects and paying the Treasury interest from our earnings .Stop trying to blames others for our failures the IMF and World bank did not put a gun to our heads , our corrupt leaders ,Bahamians ,went running to them licking their lips thinking of all the cream they could skim for family , lovers and friends while passing the burden on to the small man w VAT and ever increasing taxes
Economist 7 months, 1 week ago
I don't think that the people in Sri Lanka would agree with you.
John 7 months, 1 week ago
This announcement was to be expected after the Chinese agreed to and completed the refurbishment of the National Stadium. So there will have to be trade offs. With a low interest of just 2 percent, this means that a China construction company will head the project. It also means that less Bahamians will hired for the construction. AND hopefully there will not be excessive cost overruns or shoddy work that have to be redone. The advantage is, since the Chinese are providing funding ( loan) for the project they will be more obligated to ensure the project is at least completed in a somewhat timely manner. Unlike the Baseball Stadium that passed through three successive governments, the Dormitory at Sandilands that suffered likewise fate. Then the project on Wulf Toad where government acquired the property of a private school, invested millions and left it to sit for years as a perfect example of government’s incompetence. Not to mention the former City Market building on Market Street which started renovations under ‘was it Hubert Ingraham and was scrapped by the Christie administration. Then there is the renovation at s Accident and Emergency which was started under Minnis and is yet to be completed. Hubert Ingraham, despit criticism, got the new portion of PMH completed and it is still state of the art.
DiverBelow 7 months, 1 week ago
When one repeats the same errors repeatedly, is it a lost chance at education?, or acknowledging desperation?, or lack of viable options due to years of mismanagement? Either way it's costing the Bahamian People while some do well.
ExposedU2C 7 months, 1 week ago
Our corrupt political ruling class is not the least bit concerned about our country being the latest victim of the debt trap diplomacy that the leaders of Communist China (the ChiComs) have used to seize control of many other nations, especially financially strapped nations in Africa, Latin America and more recently the Caribbean.
It was Hubert Ingraham who invited the ChiComs to our shores back in 1992 when he foolishly took the bait of having the ChiComs build us a national sports stadium in exchange for, among other things, severing diplomatic ties with Taiwan and instead establish diplomatic relations with Communist China.
Since 1992 the leadership of the ChiComs in Beijing have wasted no time in securing their dominion over us by capitalising on the pervasive and incessant corruption within our political ruling class that has left our nation with a mountain of unsustainable national debt and no ability to continue borrowing in the international debt markets. Having to depend on borrowings from the racist Chinese Communist regime led by the very cunning and exploitative Chairman Xi Jinping speaks volumes to how financially destitute and desperate our nation has become under this most corrupt and incompetent Davis led PLP government.
This hospital project will do little for most of the Bahamian people when all is said and done. Only the evil ChiComs and our corrupt politicians who have sold our sovereignty to them stand to be greatly enriched from its construction.
And sometime soon the American people are going to wake to the grave and existential national security threat our ChiCom controlled nation presents to the U.S. at which time the U.S government may have little choice but to treat us as they do Cuba. That of course would deal a death blow to our tourist industry.
Proguing 7 months, 1 week ago
Without China there would be no Bahamar, no The Pointe, no British Colonial, no stadium, no Club Med, no Warwick, no funding at 2% when the Bahamas government bonds quote at 10% on international markets etc. They are the only major investor in the Bahamas except for the cruise lines. Would the Bahamas really be better off without China?
ExposedU2C 7 months, 1 week ago
Your question is similar to the one Eve should have carefully pondered before falling victim to the evil serpent persuading her to take that infamous bite of the forbidden fruit.
rosiepi 7 months, 1 week ago
So the same shysters that got ‘a deal’ for the re-do of the shoddily constructed Tommy R Stadium, and allowed the same along with corruption & mismanagement to run amok at the Baha Mar project and The Pointe ( plunging the Bahamas credit rating to ‘junk’) is back with another multi million dollar project to saddle us with.
The idea that any construction coming out of China and employing conscripted workers could top that done by other contractors and/or Bahamian workers is laughable. One could start with the sand laden poorly stabilized concrete and just stop there. Unfortunately this is but the beginning.
This building will house Bahamians healthcare workers, citizens there to get better, how much will it cost to do the remediations necessary to get rid of the mold? Duct work that acts like a sponge sucking humidity into it’s so called ‘non-impermeable’ surface?
Let’s see that EIA. When was this project out for tender to the international market? How many Bahamian contractors will go bankrupt over this and/or the legals to pursue their claims? Will the Bahamian people ever see the true amount of debt owed to the CPR that the PLP have consistently and without remorse preloaded onto future generations?
moncurcool 7 months, 1 week ago
You raise the point that many in the media should be questioning the minister about. When did this go out to tender? How is it that China Construction wins the tender? WHo else submitted a tender?
We need serious journalists in this country who will ask the touch questions, and not just report the tribble from the mouths of these politicians.
John 7 months, 1 week ago
This doesn’t happen by chance,” the minister revealed of the loan. “I went throughout the Caribbean. I went to Guyana, I went to Trinidad. The Chinese are building and funding many healthcare facilities throughout the Caribbean.’
ExposedU2C 7 months, 1 week ago
And the deceitful devil has plenty more to give to those foolish enough to take it. Bahamians have traditionally prided themselves on The Bahamas being predominantly a nation of Christians.
The hatred and abuse of Christians by the Godless ChiComs in their own country is as well documented as their proven hatred and abuse of people much darker themselves in the many African nations they now have dominion over.
TalRussell 7 months, 1 week ago
Cost to build per bed for a new state-of-the-art hospital can be just shy of $2 Million. --- Making the $290 Million but a good faith down payment. The Princess Margaret Hospital is a 410 bed facility. --- Yes?
sheeprunner12 7 months, 1 week ago
The Chinese projects leave much to be desired ............. The National Stadium, Bahamar, The Pointe, North Abaco Dock Facility.
They ALL came with strings attached and much frustration and additional costs in tow
This will be another headache (white elephant) for future Governments to either maintain or repair often
ThisIsOurs 7 months, 1 week ago
". A flyer advertising the meetings, which has been seen by this newspaper, says it is targeted at communities such as Stapledon, Rock Crusher and Dolphin Drive."
Is this new hospital for the entire country or will they be creating new hospitals 3 subdivisions at a time. I'm still confused at the limited services. We need a new hospital for everything PMH needs to be condemned and the other hospital is too expensive for the majority of the populace
Why is this govt rushing everything? Why does someone have to lift a disabled person up 3 flights of steps at the newly designed stadium? Please stop ramming these projects through and think. Please. You like Renward Wells may one day require nonexistent overlooked services at the new hospital
DiverBelow 7 months, 1 week ago
The Politically Elite will jet-off to Miami when sick. They will never see the inside of any local community govt-run hospital. They don't care.
carltonr61 7 months, 1 week ago
That is dangerous swamp land A spring river seems to flow from Rock Crusher heading toward the Saundes Beach area. All ofvthecarea West of BASH will spring worst with Hlobal Warming and Moon Tides. Great initiative by our neighbor so far away.
SP 7 months, 1 week ago
The government made the best decision possible in this instance. The World Bank and IMF would have included an extraordinary amount of debilitating strings attached at an outrageous interest rate reserved especially for third world countries.
This is exactly why Niger, Mali, and Burkina Faso, refuse to accept offers of loans from the IMF and World bank today!
concernedcitizen 7 months, 1 week ago
Damm , The IMF and World bank have cut us off or charge a high interest rate bc we are Junk bond status . You let your dislike of certain countries cloud your judgement , money does not move like that , there is no emotion in finance .China is just buying our vote in the United Nations , and if we don,t vote w them or pay the interest they will be ruthless ,, you let emotion and racism cloud your judgement
ExposedU2C 7 months, 1 week ago
You're a lost soul SP.
realityisnotPC 7 months, 1 week ago
I wonder if "SP" is a real person, or just an account based at the Chinese embassy...SP= Sino-Propaganda?
GodSpeed 7 months, 1 week ago
How much longer can this funny money world system last?
Sickened 7 months, 1 week ago
This new hospital should be able to provide ALL services. Then the older and decrepit parts of PMH can be leveled in order to make room for certain additional services in the future. This new hospital should also have double layer parking and we are not known for providing sufficient parking for any building or venue - just look at Sandals out west and the cars parked on every and all green spaces. It's bloody chaos out there and a huge eyesore.
sheeprunner12 7 months, 1 week ago
Creating a complementary hospital to PMH is a good idea ...... why do we always look for NEGATIVES?????
PMH is a fine institution .......... it just needs overhauling. Go to other public hospitals in CARICOM, then compare it with PMH.
Why do you think UWI approved PMH to train its doctors ....... because it is far better than the ones that are in Kingston, Jamaica (KPH/University Hospital)
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